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Computable General Equilibrium Models

Regional economic effects of changes in South Africa's electricity generation mix

Bohlmann, H.R., Horridge, J.M., Inglesi-Lotz, R., Roos, E.L. & Stander, L.

This paper examines the long-run regional economic effects within South Africa of changing the electricity-generation mix away from coal. We use a regional CGE model of South Africa to conduct our analysis. The results of our simulations suggest that the effect of the policy is sensitive to other...

Aug 2018

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National minimum wage in South Africa: A Computable General Equilibrium Model Analysis

Jean Luc Erero

This paper analyses the economy-wide impact of the national minimum wage on the South African economy. The analysis was conducted using a static computable general equilibrium (CGE) model of South Africa, which captured the observed structure of South Africa’s economy. The parameters of the CGE...

Nov 2016

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The Impact of the COMESA-EAC-SADC Tripartite Free Trade Agreement on the South African Economy

L. Walters, H.R. Bohlmann and M.W. Clance

This paper analyses the effects of the COMESA-EAC-SADC Tripartite Free Trade Agreement (TFTA) on the South African economy using a global Computable General Equilibrium (CGE) model. Simulation results show that South Africa’s economy gains from the implementation of the trade agreement with GDP...

Sep 2016

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Effects of Increases in Value Added Tax: A Dynamic CGE Approach

Jean Luc Erero

This paper analyses the effects of increases in value added tax (VAT) through a dynamic computable general equilibrium model. The database of the model encompasses a social accounting matrix (SAM) for the year 2010. All the important South African taxes are included in the SAM and the household...

Nov 2015

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An Economy-Wide Evaluation of New Power Generation in South Africa: The Case of Kusile and Medupi

J. A.Bohlmann., H. R. Bohlmann, and R. Inglesi-Lotz

The South African economy has suffered over the past decade due to a lack of adequate electricity supply. With two new coal-fired power stations, Kusile and Medupi, scheduled to come online over a six year period (2014-2019), their additional generation capacity is expected to restore electricity...

Jun 2015

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The Short Term Economic Impact of Levying E-Tolls on Industries

Francois J Stofberg and Jan H van Heerden

TERM [1] is used to analyse the short term regional economic impact of an increase in industries’ transport costs when paying E-Tolls. Market-clearing and accounting equations allow regional economies to be represented as an integrated framework; labour adjusts to accommodate increasing...

May 2015

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A Simple Method for Computing Equilibria when Asset Markets Are Incomplete

Wei Ma

The problem of computing equilibria for general equilibrium models with incomplete real asset markets, or GEI models for the sake of brevity, is reconsidered. It is shown here that the rank-dropping behavior of the asset return matrix could be dealt with in rather a simple fashion: We first compute...

Dec 2014

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The Impact of the 2014 Platinum Mining Strike in South Africa: An Economy-Wide Analysis

Bohlmann, HR, Dixon, PB, Rimmer, MT and Van Heerden, JH

In this paper we measure the economy-wide impact of the 2014 labour strike in South Africa’s platinum industry. The strike lasted five months, ending in June 2014 when producers reached an agreement with the main labour unions. The immediate impacts on local mining towns were particularly severe,...

Nov 2014

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Effects of Reducing Tariffs in The Democratic Republic of Congo(DRC): A CGE Analysis

Jean Luc Erero, Daniel Djauhari Pambudi & Lumengo Bonga-Bonga

In this paper, the effects of reducing tariffs are analysed through a Computable General Equilibrium (CGE) model of the DRC. The specific DRC Formal-Informal Model (DRCFIM) is a multi-sectoral computable general equilibrium model that captures the observed structure of the DRC’s formal and informal...

Oct 2014

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Water Taxation and the Double Dividend Hypothesis

Nicholas Kilimani

The double dividend hypothesis contends that environmental taxes have the potential to yield multiple benefits for the economy. However, empirical evidence of the potential impacts of environmental taxation in developing countries is still limited. This paper seeks to contribute to the literature...

Sep 2014

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